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Auction results show strong activity in the sub-$3m commercial market

Auction results show strong activity in the sub 3m commercial market

Activity in Auckland’s entry-level commercial property market remains buoyant, with investors snapping up numerous properties in the sub-$3 million range at auction in recent weeks.

Two suburban retail investments in Ellerslie and Te Atatu Peninsula sold under the hammer in the Colliers International auction room on Tuesday.

The first property at 129 Main Highway, in the heart of Ellerslie Village, sold for $2,575,000, at a yield of 4.91 per cent.

The deal was brokered by Logan Roach, Gareth Fraser and Charlie Oscroft of Colliers International’s Auckland Investment Sales team.

Roach says the fully leased property made for an attractive investment, offering split-risk income from a very strong tenant mix.

“The property comprises two buildings occupied by five tenants, three on newly signed leases, with a weighted average lease term of four years.

“It sits on a 458sq m site with Business Town Centre zoning, providing an add-value opportunity to redevelop the site in future.

“The combination of a superb location, favourable zoning, split-risk income and future potential all made for a compelling investment proposition.

“This was reflected in the auction room on the day, with the property receiving 21 bids before selling under the hammer.”

The second property at 568 Te Atatu Road, Te Atatu Peninsula, sold for $1.6m at a yield of 4.85 per cent.

The deal was brokered by Ned Gow of Colliers’ Auckland Investment Sales team and Benson Tarm of Colliers’ West Auckland office.

Gow says the property is well located on a main arterial with a high-profile position next to Te Atatu Peninsula’s main roundabout.

“This area is tightly held by owner-occupiers and long-term investors with open market listings rarely coming available.

“The property comprises a single-level building occupied by a Hospice shop and takeaway restaurant, with market rental reviews on both leases.

“It sits on a 492sq m freehold site with a car park accessed via Taikata Road, providing great development potential in the long term.”

Gareth Fraser, Auckland Director of Investment Sales at Colliers, says suburban retail investments are popular in the current environment.

“The ‘shop local’ ethos has really taken off, with residents rallying behind neighbourhood businesses.

“As a result, we’re seeing strong interest in strip retail assets, particularly with multiple tenants providing split-risk income.

“The very hot residential property market has also generated interest in entry-level commercial properties, as investors find themselves priced out by stiff competition for housing.

“As a result, we expect investors to remain active in the suburban commercial property market, particularly in the $1.5m to $2.5m range.”

This week’s sales come within weeks of two other properties selling within the same price range at auction.

A 1,113sq m mixed-use freehold property at 518 Ellerslie-Panmure Highway, Mt Wellington, sold under the hammer with vacant possession for $1.62 million.

The deal was transacted by Roach with Associate Director Jonathan Lynch of Colliers’ Auckland Investment Sales team.

At the same auction, a 919sq m vacant development site at 8 Walmer Road, Pt Chevalier, sold under the hammer for $2.25 million.

The freehold property is zoned Business Town Centre, allowing for intensive redevelopment up to 18m in height.

The deal was brokered by Lynch with colleague Hamish Paterson.

Related Experts

Logan Roach



Logan forms part of the Auckland CBD Investment Sales Team at Colliers International. Prior to Joining Colliers, Logan completed a Bachelor of Commerce from the University of Auckland swiftly moving into the role of Business Development Manager for New Zealand’s largest specialised waste & recycling equipment supplier. Utilising the skills obtained from this role, Logan now applies this knowledge to his strong interest of commercial real estate.

Logan places emphasis on creating and developing long lasting relationships by putting the needs of his clients first, to achieve the best possible results. He specialises in the Panmure, Glen Innes, Mt Wellington, Ellerslie, Greenlane and Eastern Suburbs areas.

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Gareth Fraser

Auckland Director - Investment Sales


Gareth leads Colliers International's Investment Sales team. The team operates across the entire Auckland market from four strategic locations; CBD (including city fringe), South Auckland (based in Highbrook), West Auckland (based in North West Shopping Centre) and North Shore (based in Takapuna).

This is a large team of brokers and support staff focussed on providing solutions to owners, investors, developers, owner-occupiers and tenants. It features a specialised site sales team focussed on residential land and development opportunites. Investment Sales also includes the syndication division, offerring proportionate ownership opportunities to investors on behalf of clients.

Gareth is also on the Executive Team for Colliers in New Zealand.

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Charlie Oscroft



With an extensive background in many real estate markets spanning London, Hong Kong, Brisbane, Perth and Auckland, I bring a wealth of experience to Colliers International in client management and delivering 5 star customer service.

Charlie specializes  in both the sale of commercial, retail and industrial property as well as Syndication sell downs on behalf of clients. He is one of the leading sales brokers promoting the Auction Business.

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Ned Gow



Ned forms part of the Colliers Investment Sales team operating out of the Auckland CBD office. His expertise range from his early experience in the industrial sector and current involvement in the commercial market. Ned specialises on Auckland’s competitive fringe market where he’s had major involvements in record setting transactions, selling over $100 million worth of property since starting in 2018.


Having an early passion for real estate, Ned completed a Bachelor of Property at The University of Auckland whilst working for another commercial real estate corporation. He clearly enjoys the grit of brokerage showing dedication and diligence through a highly enthusiastic attitude and hard work ethic.


Recent Sales:

55 Carr Road, $2,430,000 - $3,000m2 land rate

213 Ponsonby Road - $5,000,000

Milford Development site  - $13,050,000

92 Beachcroft Ave, Onehunga - $10,075,000

Hillcrest Development site - $4,500,000

29 Woodside Avenue,  Northcote - $3,150,000

Onehunga Mall Retail  - $1,250,000 - 4.64%

Industrial Portfolio – West & North Auckland - $4,500,000

568 Te Atatu Road, Te Atatu Peninsula - $1,600,000 – 4.84%

Unit 2, 19 Edwin Street, Mt Eden - $2,750,000

Unit C, 174 Marua Road, MT Wellington - $1,260,000

533 Mt Albert Road, Three Kings - $3,350,000

666 Dominion Road, Mt Eden - $3,050,000 – 4.7%

151 Onehunga Mall, Onehunga - $930,000 – 4.3%

231-233 Onehunga Mall - $930,000

Unit 21, 71 Jellicoe Road, Panmure - $800,000 – 5.89%

212 Jervois Road, Herne Bay - $1,950,000 - 4.07% yield

158 Onehunga Mall - $4,250,000

292 Onehunga Mall - 5.50%

300 Onehunga Mall - $1,720,000 - $2,700m² land rate

191 Onehunga Mall - $3,420,000 - 4.00%

75 Ellice Road, Wairau Valley - $2,900,000 - 5.80%

19 Busby Street, Blockhouse Bay - $1,445,000 - 5.82%

758 Dominion Road, Mt Eden - $1,227,000 - 5.79%

274 Dominion Road, Mt Eden - $2,625,000 - 4.00%

575-579 Sandringham Road - $1,800,000 - 4.00%

134 Onehunga Mall - $1,460,000

176 Dominion Road - $1,443,000

28-36 Wellesley Street - $1,250,000 - 5.44%

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Benson Tarm


Auckland West

Benson joined Colliers International in 2015 as a Building Surveyor for the specialist Building Consultancy team, before joining the West Auckland Investment Sales team as a Commercial Broker in 2018.

During his two years as a Building Surveyor, Benson developed his technical knowledge and skills in relation to buildings and predominantly focused on commercial, industrial and retail assets. This specialist know-how, along with Benson’s analytical approach, gives him an edge when assisting vendors to position their properties in the market. He also draws on his technical skills to match owner-occupiers, investors and developers with the properties that best suits their needs.

Benson’s technical experience includes the survey and preparation of Premises Condition Reports, Dilapidation Assessments (Make Good Assessments), Reinstatement Cost Assessments, Forward Maintenance Plans and assistance with Technical Due Diligence and Project Management. Major clients who have engaged Benson’s services include Progressive Enterprises, Goodman, Kiwi Property, Z Energy, Waste Management and Trust Management.

With a number of sales and lease transactions diversified over multiple asset classes, Benson has become a-go to agent for vendors, landlords and tenants in the West Auckland Area. 

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Jonathan Lynch

Associate Director


Senior expertise in Commercial Property Sales and Leasing in central and city fringe Auckland. Completed over $500 million+ sales transactions over the previous 9 years since joining in early 2010 with a focus on investment properties, mixed-use developments, redevelopment sites comprising under-utilised improvements, land sales and office, retail and warehouse leasing.

BBS Degree (Massey University) majoring in Real Estate; 10 years of business development experience in the FMCG sector and previous role as a property manager at Jonmer Projects providing a comprehensive understanding of key drivers in both general business and the property market, together with the added benefit of an appreciation of client liaison & needs.

Client feedback example:

"I'm delighted to be able to offer the sincerest thanks from the owners of 36 Rossmay Terrace and 52 St Lukes Road. Your diligence and professionalism throughout every aspect of these campaigns for the sale of both properties was a strong factor in the extraordinary results achieved for the vendors in each case.

I would be readily recommend you as a 'dream team' within the superb Colliers group." - Parnell Services Limited (for Jonathan Lynch & Hamish Paterson)

Please contact me on 021 900 611 for all or any commercial property advice

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